Budget Wars - A New Hope (with apologies to George Lucas)

Bobarella

JWPopps thank you so much, for really taking the time to read what I'd asked and give me your thoughts. If I can explain, I used to run a food business full time. That is why I have the expensive machine. Now the machine gets used less than once a week. I wouldn't buy a rubbish cheap item, but a second hand decent one if that makes sense. I also have a friend who is experienced in these machines looking for me so it's like taking a mechanic to look over second hand cars as I really wouldn't have a clue.

Your point on belt tightening is a good one. I am also gutted because half that money was ear marked to repay my signature debt. But it seems silly to worry about something on 0% when increasing debt if I don't use those funds.

The last year, when I should have been saving for this amount, has been one of the hardest of my life. I stopped my old business because it had died effectively, but I was still stuck with all the bills each month. My new business is just getting going. I have been ill in hospital for a period of time, and been dealing with the full time care of a very little baby. So it's not the fact I just said ok I'm not going to save for an expected sum. It's more been that I haven't been able to. I've just kept hoping things would get better.

And that is a very good point again you made, I am super organised. But I live a life that has no guarantees whatsoever. So if things go wrong, I just have to deal with them.

Thanks again, appreciate your time.

[Deleted User]

Hi Bob,

No real answers I'm afraid, I'm not sure what I would do.

If there's the chance you could sell the piece of equipment and you could get a decent second hand one then I do think that's worth some consideration.

Bobarella

Deleted_User wrote: »

Hi Bob,

No real answers I'm afraid, I'm not sure what I would do.

If there's the chance you could sell the piece of equipment and you could get a decent second hand one then I do think that's worth some consideration.

No worries, it is a head scratcher isn't it. I think Im going to attempt the sale anyway as the big machine uses a lot of electricity so in that sense it makes sense.

Thing is I may well be sorted to pay all this from cash flow Option A. But I won't know till the end of February. Wish things could be more predictable, but what new business is?

Hope your ok after the other day.

Bob

apple_muncher

If selling the item brings you peace of mind and less mental and emotional rollercoaster rides because of money, it might be worth selling it and having a buffer?

crazy_cat_lady

If you can get a decent machine that still does the job, whilst getting the money you need by selling the other one, then I would put it up for sale...
In fact, I would put it up for sale, and go for the belt tightening as well. Then if you manage the savings quicker than you thought you can always change your mind about selling.
I wouldn't go for borrowing more - you have other options. xxx

Bobarella

apple_muncher wrote: »

If selling the item brings you peace of mind and less mental and emotional rollercoaster rides because of money, it might be worth selling it and having a buffer?

Thanks so much Apple I think I will sell it, as it is an unneeded piece of kit now that can be downsized. But it is a matter of how long it takes to sell. I should also point out to myself that I have repaid £2,200 since last year. So essentially I did save for my £1200 bill but got it a bit wrong:(

crazy_cat_lady wrote: »

If you can get a decent machine that still does the job, whilst getting the money you need by selling the other one, then I would put it up for sale...
In fact, I would put it up for sale, and go for the belt tightening as well. Then if you manage the savings quicker than you thought you can always change your mind about selling.
I wouldn't go for borrowing more - you have other options. xxx

Thanks Cat I appreciate your help. I have roughly 6 weeks before the big bill is due. I don't know why I am always drawn to the 0%. Although my accountant is always saying it doesn't hurt to trade on someone elses money. But. My cash flow is so unpredictable that I feel credit is a real trap for me.

Bobarella

Bobs big bill vs the maths...

To Pay £1200

£400 to buildings insurance & £800 to accountant.

Available money
£138 Feb council tax break
£138 March council tax break
£89 March business insurance break (also have one in April but too late to be useful)
£160 belt tightening in Feb
£160 belt tightening in March

Total available £685

Total to find £515

Saleable Assets

£2,500 machinery

Cash flow target

£79.23 per week till March 1st

Weeks till bill date 6.5

[Deleted User]

That sounds doable, Feb and Mar may be tricky but you've proved you can do it.

Nothing like a challenge to keep you on your toes xx

PurpleFairy26

Hi Bob :hello:

For what it's worth I would sell it. Seems and expensive luxury to keep when as you so it's only used once a week or so. If you proceed with the belt tightening as detailed above in the meantime and you sell before bill date all we'll and good. If not, you could pay off the rest of your debt and set some aside to set you on your way for the big bill next year.

Hope all else is good.

Bobarella

Deleted_User wrote: »

That sounds doable, Feb and Mar may be tricky but you've proved you can do it.

Nothing like a challenge to keep you on your toes xx

Thanks PM02, I feel a lot better already tbh just for writing all this down and working my way through it, better than having it whizz round my head.

PurpleFairy26 wrote: »

Hi Bob :hello:

For what it's worth I would sell it. Seems and expensive luxury to keep when as you so it's only used once a week or so. If you proceed with the belt tightening as detailed above in the meantime and you sell before bill date all we'll and good. If not, you could pay off the rest of your debt and set some aside to set you on your way for the big bill next year.

Hope all else is good.

Hope your ok posting at such an early hour? Yes I agree that there is no point keeping it anymore. Sometimes you don't think of things another person does. I'm grateful to my contact for opening my eyes.